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The Impact of Leadership Effectiveness on the Quality of Health Care Service at

Universiti Sains Malaysia Hospital (HUSM), Kubang Kerian, Kelantan, Malaysia

Article · July 2017

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Wan Afezah Wan Abdul Rahman

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The Impact of Leadership Effectiveness on the Quality of

Health Care Service at Universiti Sains Malaysia Hospital

(HUSM), Kubang Kerian, Kelantan, Malaysia

Dr. WAN AFEZAH WAN ABDUL RAHMAN School of Distance Education Universiti Sains Malaysia

11800 USM, Penang, Malaysia

E-mail: [email protected]

Tel: 604-653 5947

Fax: 604-657 6000

Abstract

This study aims to discover the impact of leadership effectiveness on the quality of health care service at

the university hospital in Kelantan, Malaysia. The study discussed the impact of leadership effectiveness in

providing a high quality, safe, efficient, and satisfaction to the patients. The research used two types of the

questionnaires: the Leadership Practices Inventory (LPI) survey developed by Jim Kouzes and Barry

Posner (2000) and the Consumer Assessment of Health Care Providers and Systems (CAHPS) which was

developed by the U.S Department of Health and Human Services (1995). The results showed that

leadership effectiveness correlated significantly with service quality. The study showed that the patients are

highly satisfied with the quality of health care service provided by Universiti Sains Malaysia’s Hospital.

Keywords: Leadership, Empathy, Quality, Management, Service.

Introduction

Leadership effectiveness is defined by a leader’s ability to mobilize and influence followers. Leadership

effectiveness depends mostly on the successful and punctual accomplishment of tasks from a leader’s set of

objectives. Leadership effectiveness is pivotal because it determines the success of organizations. This way,

organizations are able to improve their performance by increasing employee optimism, motivation, and

commitment, as well as organizational vision. Leadership effectiveness has been viewed as an important

part in promoting high quality health, reducing costs and improving patients’ satisfaction in health care

services.

The goal of health care services is to promote primary care, improve patient outcomes and improve public

health. Providing high quality and affordable health care services is an increasingly difficult challenge. This

is due to the complexities of health care services as well as systems, costs, quality, delivery, organization

and outcomes of health care services. Effective leadership is crucial for HUSM to maintain its quality

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services for patients. This is because the issues of quality in the delivery of health services are critical in

assessing the effectiveness of quality health care and in evaluating health policies.

Background of the Study

There has been great concern regarding leadership effectiveness due to changes in market growth and rapid

globalization (Bailie, 2011). Thus, organizations aim to improve their performance in world markets by

strengthening leadership effectiveness (Noubar, Che Rose, Kumar, & Salleh, 2011; Ventakesh, 2006).

There is little information on understanding the differential impacts of leadership effectiveness on the

quality of health care service at HUSM. The research aims to examine the relationships between leadership

effectiveness and outcomes for the quality of health care service. It will investigate the impact of leadership

effectiveness and quality of health care involving the staff and patients at HUSM. The research will

interview about 353 staff and 361 patients.

Statement of the Problem

We always hear different stories and complaints from patients from different backgrounds from various

hospitals. There has been great concern regarding the quality of health care service at hospitals, especially

government hospitals (Raman, 2008). This is because hospitals have been trying to improve their services

in many ways. Everyday, hospitals and other health care providers face a lot of problems aside from dealing

with patients. These problems include efficiency, management, staffing, logistics, maintenance and others

(Becher & Chassin, 2001). This is because health care providers are facing strong competition due to the

industry's movement towards managed health care systems. In order to create or sustain a competitive

advantage, health care providers are pressured to integrate with modern approaches, which stress leadership

effectiveness and quality of health service outcomes (Choi; Cho; Lee; Lee & Kim, 2002).

Leadership effectiveness plays a pivotal part in making sure that employees perform above and beyond

their abilities in providing the best health care services (Boseman, 2008). In this scenario, with effective

leadership, it can help to improve the quality of health care services at HUSM (Choi et al., 2002). Effective

leadership involves all groups, starting from the top leaders; the board directors to the lower management,

who work at HUSM. Effective leadership and outstanding employee performance is needed in order to set

up an excellent quality of health care service at HUSM so that it will be known for its excellent and

improved services. Thus, the study will explore the impact of leadership effectiveness, improving the

quality and outcomes of health care service.

Objectives of the Study

1. To determine the impact of leadership effectiveness on the quality of health care service at HUSM. 2. To find out if there is a need to increase the quality of health care service at Universiti Sains Malaysia

Hospital (HUSM), Kubang Kerian

3. To find out whether leadership effectiveness effects the employees’ satisfaction at HUSM.

Purpose of the Study

The purpose of the research is to explore the impact of leadership effectiveness toward the total quality of

health care services at HUSM. Specifically, the research aims to increase the likelihood of achieving

desired health care outcomes as expressed by the patients as well as to protect and improve the health of

patients. The purpose of the research is also to improve the quality of health care services as well as clinical

practices and patient outcomes and also to reduce mistakes. The research will serve as an integral part of

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quality improvement programs in hospitals, clinics and health plans at HUSM as well as other hospitals.

Accordingly, the research will provide recommendations that may help leaders from HUSM establish the

importance of leadership effectiveness in health care services. Lastly, the study aims to give patients access

to the best possible health care services and resources in Malaysia.

Research Questions

1. Does leadership effectiveness impact the quality of health care service at HUSM? 2. Is there a need to increase the quality of health care service at Universiti Sains Malaysia Hospital

(HUSM), Kubang Kerian?

3. Does leadership effectiveness effect the employees’ satisfaction at HUSM?

Research Hypotheses

To answer the research questions, the following hypotheses will be tested:

H01: There is a significant relationship between leadership effectiveness and quality of health care service at

Universiti Sains Malaysia Hospital (HUSM), Kubang Kerian.

H02: There is a need to increase quality of health care service at Universiti Sains Malaysia Hospital

(HUSM), Kubang Kerian.

H03: Leadership effectiveness does effect the employees’ satisfaction at HUSM.

Significance of the Study

The significance of the research to the domain of leadership effectiveness is important in improving the

quality of services in organizations as it will be of interest to scholars in management and leadership,

specifically to health care providers. The study will extend the knowledge that currently exists in the

literature. This study will also contribute immensely to the current literature by considering leadership

effectiveness as one aspect of the broader scope of health care services.

The study will provide an understanding of the importance of leadership effectiveness toward improving

the practices, procedures, and success of the organization. Additionally, this research will help

organizations to develop leaders who can meet today’s challenges as well as provide better services to

patients. On top of that, the research will help current and future leaders to succeed in their career

development and stimulate future research on similar topics.

By providing quantitative measures of leadership effectiveness and quality health care services, the

research will provide new perspectives on the relationship between leadership effectiveness and the quality

of health care services. This study will make a significant contribution to the field of leadership

effectiveness and quality health care services given that the existing system is unsatisfactory to patients.

Scope of the study

In this research, the main purpose is to investigate the impact of effective leadership on the quality of health

care services at Universiti Sains Malaysia Hospital (HUSM), Kubang Kerian. Thus, the research is focused

on leadership effectiveness and the quality of the health care services at HUSM. This study is only limited

to the staff and in-patients at HUSM.

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Literature Review

Leadership is a process of influencing followers in order to achieve a common understanding to perform a

task and reach an organizational goal (Smith, 1996). The concept of leadership gives huge impact on the

theory and practice of organizations (Smircich & Morgan, 1982). This is because without good leadership,

many organizations will be paralyzed and disorganized. Leadership effectiveness is a vital element in

bringing organizations to success because effective leaders understand its impacts and contributions in

improving the quality of organizations (Noubar et al., 2011). Yusof and Bhattasali (2008) point out that

effective leadership has played an important role in bringing organizations closer to global standards.

Effective leadership provides leaders with skills, so that they are able to have a clear picture to meet the

challenges of the environment and create significant change in order to meet organizational goals (Center

for Creative Leadership, 2010).

McCuddy and Cavin (2008) noted that effective leaders know how to adapt to multicultural differences,

have exceptional knowledge of business operations, have effective time management skills, and be able to

act and think beyond traditional boundaries. Additionally, being an effective leader requires the ability to

take the perspective of others (McCormick, 1999). McCormick further notes that the ability to take the

perspective of others means that leaders should be able to see the world through others’ eyes.

According to Puvarattanakul and Muenjohn (2009), leaders are responsible for the success or the failure of

their organizations. Thus, to achieve their objectives and goals, the organizations must have effective

leaders, who can influence employees to work towards achieving those objectives and goals in an efficient

way. On the same note, effective leaders initiate the necessary changes in business organizations to achieve

these goals. According to Toremen Toremen, Ekinci, and Karakus (2006), a leader who wants to be

effective must employ human touch, which means using empathy in all of his or her leadership actions.

Geller (2000) noted that, effective leadership can be accomplished through empathy, regular

communication, and good interpersonal skill with employees. These criteria will help effective leaders to

give clear directions and help employees to rise above and beyond organizational practices to accomplish

difficult tasks. Effective leadership plays a vital role in sustaining the success of quality health care service.

Effective leadership is seen as a process of unifying people, developing cohesive skills, innovating, and

having supportive relationships with the people around them. These types of leaders also help people to

mobilize change (Essays, 2013).

Being effective leaders means these leaders involve everyone at every level of the organization. They know

the best approach for their staff and are able to guide them closer towards their vision. These leaders are

empathic, have shown a strong commitment, and are able to lead by example, inspiring and supporting their

teams. These leaders have also shown to be strong role models for the beliefs and values they hope others

will adopt. In a health care environment, these types of leadership skills are very important in terms of

quality. A study showed that leadership has a visible affect on the quality of patients’ health care

(Mowbray & Firth-Cozens, 2001).

Over the years, quality has become core to our daily lives. Improving the quality of health services has

become a primary concern for patients. In health care services, improving patient and employee satisfaction

leads to favorable results, positive word of mouth and positive affects of medical outcomes (Choi, 2002). In

order to provide satisfaction to patients, quality service has become increasingly important for hospitals.

Juran (1988) said that quality service nurtures customers’ confidence and is very important for a

competitive advantage. Quality also means enhancing effiency, reducing mistakes and reducing costs

(Mowbray & Firth-Cozens, 2001). Previous research states that effective leadership is positively associated

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with higher employee satisfaction and better performance and would thus improve public health care

services (Essays, 2013).

Quality service is reflected in today’s health care centers in a wide variety (Choi, 2002). Quality service

refers to clinical outcomes, services received by the patients that make a medical difference in the lives of

the patients . These medical treatments can include everything from doctor’s appointments, consultations,

treatments, procedures, and medications (Hughes, 2008). Service relates to what the medical staff can do to

make the patients’ experience better and make them feel good. Choi et al. (2002) also noted that quality

service is an important ingredient of the success of an organization based on its primary role of achieving

patient satisfaction. These include communication, response, amenities, level of empathy and the quality of

the care that they receive. The research will be determined based on three basic elements, which include the

contribution of leadership effectiveness, the quality of the service, and the satisfaction of patients and staff

of HUSM.

Leadership effectiveness and quality health care service are two essential elements in increasing the

likelihood of achieving desired health care outcomes. These elements play an imperative role in promoting

the health care of the general public and reducing potential threats to health such as infectious diseases and

environments. Furthermore, improving the quality of health care services has became as top priority on the

list of hospitals and government agenda. These elements will enhance the chances of patients getting access

to the best possible health care services and resources in Malaysia.

Methodology

The study was conducted at the teaching university known as “Hospital Universiti Sains Malaysia”

(HUSM) located in Kubang Kerian, Kelantan, Malaysia. The researcher visited in-patients and employees

at the hospital to distribute the questionnaire. The researcher met the in-patients and staff individually and

explained the purpose of the research. The research was using a quantitative method. The study used a

cross-sectional research design. In this case, it used two types of survey instrument. To measure leadership

effectiveness for the doctors, nurses and administrations, the research was using the Leadership Practices

Inventory (LPI) survey developed by Jim Kouzes and Barry Posner (2000). For the in-patient survey, the

research was using a widely used questionnaire, the Consumer Assessment of Health Care Providers and

Systems or CAHPS. CAHPS is developed by the U.S Department of Health and Human Services (1995).

Mrs. Nor Aini from Universiti Sains Malaysia’s Language Center has validated the instruments that will be

used in the research. The research will be done by selecting doctors, head nurses and administrators and in-

patient groups from the selected wards. Survey questionnaires were used to obtain information on patients’

and employees’ satisfaction in health care plans.

Sample

The sample consisted of hospital staff and patients who received inpatient services from different wards.

This sample size is selected based on the top five wards that received the highest amount of patients. The

selected wards are the female medical ward, the male medical ward, antenatal wards, and the male surgical

ward. The sample was categorized as a non-interventional study. It was a purposive sampling which

focused on a selected group in order to answer the research questions.

Vulnerability/Protection of participants’ rights

The patients and staff who were willing to participate in this study are protected according to the federal

requirements specified by the Department of Health and Human Services’ Code of Regulations,

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IRB00004494. Accordingly, the research protocol for the study was reviewd by the University Sains

Malaysia Research and Ethical Committee. The study strictly follows all the guidelines needed in order to

protect participants’ rights and vulnerability. The researchers are committed to follow all the guidelines. As

participants, they:

1. Have enough time to decide whether or not they wish to be in the research study and to make that decision without any pressure from the people who are conducting the research.

2. Can refuse to be in the study and/or to stop participating at any time. 3. Will be told what information the study is attempting to attain, and what they will be asked to do in the

study.

4. Will be told about the reasonably foreseeable risks of being in the study. 5. Will be told about the possible benefits of being in the study. 6. Will be told whether there are any costs associated with being in the study. 7. Will be told who will have access to the information collected and how their confidentiality will be

protected.

8. Will be told whom to contact with questions about the research and about their rights as a research subject.

9. The participants will not be asked to write down their names on the survey form. 10. Staff group- only for those who are working at the selected wards. Privacy and confidentiality will be

guaranteed. It will definitely have no effect in the yearly performance.

Sample size calculation

According to Glenn D. Israel (2015), for the purpose of the study and population size, three criteria are

needed to determine the appropriate sample size. The criteria are: the level of confidence, the level of

precision, and the degree of variability in the attributes being measured. In this study, for the level of

confidence , a 95% confidence level is selected. The level of precision, also known as sampling error, is ±5

percent (100-95%), which is the range the true value of the population is estimated to be. The degree of

variability is 0.05, which indicates the maximum variability in a population. Each of these are reviewed

below:

N = N is the population size.

e = the level of precision.

The total number of the participants was 805. Out of 805, 407 were HUSM staff and 398 were patients.

Statistical and Data Analysis

Data Collection

The data will be collected at one time point within one to two weeks. The researchers will visit the selected

wards and explain the study to the participants. After brief interviews with the patients and staff, the

participants will complete the survey form. The patients will complete the CAHPS survey and the staff will

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complete the LPI survey form. The surveys will use the 5-point Likert Scale, where 1 = Strongly Diagree

and 5 = Strongly Agree. The collected data will be labelled and stored in a secured file by the primary

researcher to ensure confidentiality.

The Result

The preliminary analysis was conducted which included the frequency analysis, factor analysis, reliability

analysis and descriptive analysis. Frequency analysis is used to gather information on the respondents’

profile, factor analysis and reliability analysis is conducted to measure the reliability and quality of the

instrument used in this study while descriptive analysis is conducted to examine the respondents’

perceptions toward the variables of the study (leadership effectiveness and service quality).

Profile of HUSM Employees

The result showed that the majority of the HUSM employees who participated in this study are female

(69.5%). Most of them are from 26 to 35 years old (42.9%). Out of 406 respondents, the majority of them

are Malay (92.9%), followed by Chinese (5.9%), others (1%) and Indian (0.2%). As for educational

qualification, the majority of the respondents have a high school diploma and associate degree or equivalent

(43.8%).

Profile of HUSM Patients

The result showed that most of the HUSM patients involved in this study are female (73.2%). The majority

of them are from 26 to 35 years old (33.2%). Out of 396 respondents, the majority of them are Malay

(92.9%), followed by Chinese (3.7%), Indian (0.5%) and others (0.2%). As for educational qualifications,

the majority of the respondents have a high school diploma or equivalent (44.6%).

Referring to Table 1, the KMO value of 0.927 and the significant result of Bartlett’s Test of Sphericity

shows that the data did not have multicollinearity problems and the correlation between the items is

sufficient to perform the factor analysis.

Table 1: KMO and Bartlett’s Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .927

Bartlett's Test of Sphericity Approx. Chi-Square 6769.810

df 351

Sig. .000

The study has two variables which were leadership effectiveness as the independent variable and service

quality as the dependent variable. The results of the reliability analysis in Table 2 indicated that both

variables have good and strong Cronbach’s Alpha values which was more than .90. This result shows that

the instrument used in this study is reliable.

Table 2: Reliability Analysis

Variable Cronbach’s Alpha No. Of Items

Leadership Effectiveness .944 13

Service Quality .933 14

The results showed that leadership effectiveness was correlated significantly with the service quality (p <

0.05). However, the relationship between the two variables is very weak (r = 0.103). In Table 3, leadership

effectiveness, service quality as well as overall service quality was perceived as high by the respondents.

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Table 3: Mean Scores and Standard Deviation for the Study Variables

Variables Mean Standard Deviation Results

Leadership Effectiveness 4.24 0.545 High

Service Quality 4.31 0.550 High

Overall Score of Service Quality at HUSM 8.17 1.467 High

The patients were asked to indicate their perception towards HUSM overall service quality based on the

scale from 1 (very low) to 10 (very high). The result showed that 99.2%, majority of respondents were

satisfied with the services. Very little chose lower than scale 5 (0.8%).

The Spearman’s Rho Correlation analysis was conducted in the study. The results showed that leadership

effective correlated significantly with service quality (p < 0.05). However, the relationship between the two

variables is very weak (r = 0.103). Based on the result of simple linear regression, the result showed that

there is no relationship between the independent variable (Leadership Effectiveness) and dependent

variable (Service Quality). This showed that there are other predictors that affect the quality of services at

HUSM.

Conclusion

Leadership effectiveness is an important tool for organizations in order to inspire, mobilize, communicate

and motivate their followers to reach the organizational goal. Leadership effectiveness means great leaders

with certain skills do what it takes to accomplish any goals that they set in their minds in order to improve

the quality of the services for the benefit of the staff, the customers and the organization itself. Quality of

health care service relates to promoting and enhancing health care services, increasing efficiency and

patient outcome, and reducing mistakes and costs.

This study revealed that the employees perceived their leader to have high leadership values especially in

terms of encouraging a sense of cooperation in the workplace, treating the employees with respect and

courtesy and having a good relationship in the workplace. Meanwhile, the HUSM patients reported that

they received high quality healthcare service from the HUSM staff especially in terms of professionalism

and great attitude of the HUSM staff, satisfaction with the treatment given and things being explained in a

way that is easily understood. Based on the correlation analysis, this study found that there is a correlation

between leadership effectiveness and service quality. However, the relationship is very weak.

Acknowledgement

The author would like to thank Universiti Sains Malaysia for making the research possible under The

Short-Term grant (Grant no. 304/PJJAUH/6313205).

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